The $258 billion children's clothing market has another big brand going public

Whether online or offline, clothing is a very stable category, including men's clothing, women's clothing, children's clothing and other subcategories. The prosperity of the e-commerce industry has promoted the development of the clothing industry, and the best ones include SHEIN. Following the listing of children's clothing brand PatPat, another children's clothing brand Kidpik will be listed on the Nasdaq, and its initial public offering will raise about US$18 million.

Founded in 2016, Kidpik is a children's clothing brand that is unique in its online subscription model. Kidpik sends out a surprise gift box every month or quarter, carefully curated according to the child's style, offering mixed and matched, professionally styled clothing, and each seasonal collection is designed in-house by a team with decades of experience in children's clothing design.

(Photo source: Kidpik official website)

According to Kidpik's third-quarter financial report released recently , net sales in the third quarter and the first nine months of this year were US$5.6 million and US$16.6 million, respectively, up 20.3% and 49.5% , respectively . Subscription services accounted for about 85% of overall sales. The first selected girls' fashion box was shipped on March 18, 2016, and the one millionth subscription box was shipped in April 2021.

To start a subscription, consumers need to fill out a small survey about their child's size and style preferences, such as color, fabric, personal style, etc. Professional matching knowledge and a simple shopping experience capture the pain points of shopping and save parents a lot of time. It is precisely because of this unique subscription model that Kidpik has achieved good results in the children's clothing market.

Kidpik adopts a multi-channel layout, with sales on Amazon, Walmart, and independent websites, attracting traffic from multiple sources. At the same time, Kidpik also focuses on investment in social media. A large part of the user growth comes from social media marketing, with advertising covering YouTube, Snapchat, TikTok, Pinterest, and cooperation with online brands. It also plans to enter new channels such as radio and connected TV.

At the same time, Kidpik continues to explore new channels and actively expand new product lines, such as adding boys' clothing and toddler sizes. In order to enhance its competitiveness in the market, Kidpik has also increased its investment in proprietary technology and algorithm capabilities, collecting consumer data through interactive quizzes, enabling us to provide a unique personalized experience in each box. When consumers keep and return items, the algorithm improves its understanding of personal preferences, thereby improving personalization.

According to a report by Statista, total sales of the children's clothing category will reach approximately $258 billion in 2021, of which the United States is expected to generate approximately $49.5 billion, and is expected to grow at a compound annual growth rate.

Although the clothing market is hot, in order to gain a foothold in the crowded market, sellers must pay more attention to fashion trends and spend more time on innovation in product development.

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